Regional summer tourist spend tops pre-COVID levels

Adrian Black | February 17, 2023

Regional Australia has enjoyed an estimated $10 billion summer holiday windfall with spending levels eclipsing pre-pandemic levels, according to National Australia Bank data.

NAB merchant transaction data indicated a record regional spend up 12 per cent on the previous year and 115 per cent above pre-COVID-19 levels.

WA recorded the highest increase, enjoying a 20 per cent boost to regional spending, while SA and Queensland both recorded an 18 per cent increase on last summer.

The spend in regional restaurants was up 15 per cent on the previous year, while pubs earned 12 per cent more.

Cameron Johns, who runs a boat rental business on Victoria’s Gippsland Lakes, said both bookings and forward bookings were well-above pre-pandemic levels.

“Demand over the holiday period was extremely strong – Victorian and interstate travellers are back and we’re seeing more international tourists in the region too,” Mr Johns said.

“We were concerned that cost of living pressure might impact bookings this holiday season but this hasn’t been the case – and reservations are holding strong into the year ahead.”

NAB executive for regional and rural agribusiness Khan Horne said the early data was an optimistic sign for regional communities.

“The pebble in the pond effect just keeps on going where there is tourism,” Mr Horne told AAP.

“Our towns are vibrant. I’ve been to Griffith, Albury, Wagga, Wangaratta, Bendigo, Ballarat, Echuca post-flood… you can definitely see that car parks are full and people are out there in cafes and pubs, so it’s just a good sign to see.”

Despite the encouraging data, Mr Horne said some operators continued to struggle with increasing costs and staff shortages, as homeowners battled with steadily rising interest rates.

“We also understand some families and some businesses are doing it tough,” he said.

“Reach out to your bank locally … and take some data of what’s happening and finally, if you’re really worried, just ask for the local regional manager to be there with you and have a good conversation.”

NAB announced a $2.05 billion statutory net profit at its first quarterly update on Thursday, bolstered by an 18.7 per cent cash earnings boost compared to the same quarter last year.